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Public procurement uncertainty undermining industrialisation potential of big grid roll-out – …

Steel and Engineering Industries Federation of Southern Africa (Seifsa) CEO-designate Tafadzwa Chibanguza says the prevailing uncertainty surrounding South Africa’s public procurement rules in relation to local content has emerged as a major obstacle to reigniting industrialisation on the back of the country’s large grid roll-out. In addition, he argues that the recently released request for proposals (RFP) for South Africa’s inaugural procurement of independent transmission projects (ITPs) is so heavily geared towards foreign investors that it could leave domestic capacity stranded.

Eskom says 291 MW renewables offtake scheme tailored to decarbonisation needs of large customers

Eskom says its recently published request for proposals (RFP) inviting large power users to bid for 291 MW of solar PV capacity that the State-owned entity is aiming to introduce in phases from the end of 2027 has been tailored to meet the growing demand of such customers for solutions that reduce their indirect carbon emissions. Successful bidders for what Eskom is calling its ‘Renewable Energy Offtake Programme’ will enter power purchase agreements (PPAs) of between five and 25 years, with the renewable electricity delivered in phases from multiple Eskom projects.

EXSA views Seriti Green deal as key milestone as it scales up for pure-play trading role

Licensed electricity trader Energy Exchange of Southern Africa (EXSA) describes its recently concluded 15-year power purchase agreement (PPA) with Seriti Green as a major milestone in positioning the company as a sizeable “pure-play” trader ahead of South Africa’s transition towards a more competitive market. The R5-billion Mpumalanga project reached financial close in August on the back of the PPA, through which EXSA will buy all of the 525 GWh of electricity that the wind farm is expected to produce yearly once in full production. The 155 MW project, which will incorporate 25 wind turbines, is expected to begin generating electricity in October 2027.

Innovation group adds more tech to portfolio

To remain at the forefront of driving South Africa’s strategic energy objectives, the National Hydrogen and Fuel Cells Research Development and Innovation Strategy, known as Hydrogen South Africa, or HySA, continues to advance green hydrogen technologies for a sustainable future, says HySA Infrastructure Centre of Competence (CoC) director Professor Dmitri Bessarabov. HySA has made considerable progress along several technical frontiers, including high-power-density electrolysis systems, the adaptation of hydrogen refuelling protocols for local conditions and advanced hydrogen safety systems.

Nigeria approves $2.6-billion electricity sector debt refinancing plan

Nigeria has approved a phased plan to refinance 4-trillion naira ($2.61-billion) in electricity sector debt to help stabilise the nation’s ailing power industry and improve supply, its finance minister said. The debt, primarily owed to 27 power generation companies for outstanding invoices between 2015 and 2023, has stifled investment in the industry and exacerbated chronic power outages in Africa’s most populous nation.

Electricity reform ‘irreversible’, Ramokgopa insists as he again urges Eskom not to pursue …

Electricity and Energy Minister Dr Kgosientsho Ramokgopa insists that the reforms under way in the electricity sector are “irreversible”, and has again confirmed that he has asked the Eskom board not to proceed with its legal case against the regulator’s decision to license five additional electricity traders in 2024. Having called a media briefing to provide an update on the performance of the grid amid concerns that Eskom was again relying too heavily on its expensive diesel generators, Ramokgopa fielded a series of questions about the status of the reform process and Eskom’s move to have the High Court review and set aside five domestic trading licences.

Two contractors shortlisted for R31.5bn Hiryo coal-to-fertiliser project

Two Chinese engineering companies, East China Engineering Science and Technology (ECEC) and Sinopec Ningbo, have made the final round of bidding for a basic engineering contract to build the $1.7-billion, or R31.5-billion, Hiryo coal-to-fertiliser industrial complex in Kriel, Mpumalanga, for blue ammonia and sustainable chemicals producer SUISO. The final decision is expected to be made this month by multilateral financial institution the African Export-Import Bank (Afreximbank), which was appointed by SUISO as the project’s sole lead arranger, financial adviser and debt syndicator.

Necsa welcomes confirmation of site for next nuclear power station

The State-owned South African Nuclear Energy Corporation (Necsa) Group welcomes the upholding of the decision to grant State-owned Eskom environmental authorisation to build a 4 000 MW nuclear power station in Duynefontein, in the Western Cape. The 2017 decision to grant environmental authorisation was confirmed by Forestry, Fisheries and the Environment (DFFE) Minister Dr Dion George last week following an appeal against the original decision, Necsa says.